Since Goldman Sachs started Marcus in 2016, the personal lending subsidiary has loaned over $3 billion dollars to 1.5 million customers. The question is, do you trust a major wall street bank with your small personal loan?
If you have a strong credit history and are looking for a loan, borrowing from Marcus personal loans may be right for you. We are going to go over the details of borrowing from Marcus so you can make an informed decision.
Who is Marcus Lending?
Named after Goldman Sachs founder, Marcus Goldman, Marcus is a subsidiary of Goldman Sachs.
Traditionally, Goldman Sachs is known as an elite investment firm of wall street. Most of their banking is centered on government and large corporate customers.
Marcus is Goldman’s entrance into the consumer banking market. This more casual side of Goldman makes them competitive with the trend of online-based consumer lending companies.
What sets Marcus apart is that its loans are funded by Goldman. Other online lenders use alternative sources for funding such as peer-to-peer investing.
Marcus offers personal loans at a fixed rate with no fees. Customers can also obtain an online high yield savings account and certificate of deposit.
Are You Eligible to Apply?
Borrowers looking to apply for a loan with Marcus must be at least 18 years old, 19 in Alabama and Nebraska, and 21 in Mississippi and Puerto Rico. You also need a Social Security or Tax ID number.
Once you fill out the application you may be asked for documentation to verify the information you provided. To verify your income you’ll need pay stubs or a W2.
Your identity is verified with your Social Security number or photo ID. If there are any outstanding questions you may be asked for additional information.
The maximum amount you can borrow is $40,000. The amount you will be approved for will depend on your application, credit report, intended use, and ability to pay.
What Can You Use Your Loan For?
Marcus loans can be used for almost any purpose including large purchases, debt consolidation, special occasions, and vacations. You can also obtain an unsecured loan for moving and home improvement projects.
Only the applications with excellent credit will qualify for the lowest interest rates Marcus offers. As a general rule, the longer the loan term, the higher the interest rate. Loans will have an APR between 6.99% and 24.99%
Marcus uses a daily simple interest calculation method. Interest is calculated every day on the outstanding principal.
Interest continues to be calculated on the outstanding balance when payments are missed, partial, or late. Advance payments do not affect future payments but are taken from the principal.
Loan Fund Disbursement
Once you are approved and you’ve signed your documents the loan funds will be issued to you in one to four days. This timing could be more or less depending on the day of the week and your banking institution.
When you have one of the largest and most powerful banking institutions backing your loan company, you can expect to receive some perks. Marcus delivers with a money learning center, no fees, customization of your repayment, and on time payment rewards.
Explore Your Options
You can find out what your loan options are with Marcus without it affecting your credit score. Marcus only does a hard pull on your creditworthiness after you complete a full application.
No Computer Required
Not everyone wants to apply for a loan online, and Marcus has a solution. If you would rather, you can call and request a paper application.
You won’t be charged fees for anything. Marcus guarantees that fees are not a part of their lending model.
This includes origination fees for processing the loan. You will receive the full amount that you agreed to borrow.
There are no late fees. If you are late or miss a payment, interest will continue to accrue and your total repayment amount will increase. Additionally, continued nonpayment may result in you defaulting on the loan.
There are no early payoff penalties. If you so choose, you can pay your loan off at any time.
Customize Your Payment
Customize the amount of your monthly payment in the online application process. Just move the sliders to choose your loan total and monthly payment.
If you are looking for more information on how to have a healthier financial future, the resource section is the place for you. In this section, you’ll find easy to read articles about saving, debt management, credit management, and how to reach your financial goals.
Faster Applications for Savings Accounts
If you have a loan with Marcus, you can apply for a savings account in just a few steps through your online account portal. Once opened, you can manage both accounts in one convenient portal.
Track Your Loan Status Online
Once you complete your loan application online you can track the status through your account profile. Marcus will also send you an email any time your application status changes.
More than One
If you currently have a loan with Marcus, you are not stopped from obtaining a second. Simply log into your account to start the process. You cannot use a Marcus loan to consolidate the debt of another Marcus loan.
On-Time Payment Rewards
Once you make twelve on-time consecutive payments in full you have the ability to defer one payment. You won’t accrue any additional interest or fees during this deferral month.
The length of your loan will be extended by one additional month for each deferral month you use. Payments and interest resume once the deferral month is completed.
There is no limit to how many deferral months you can earn and use. You don’t have to use it immediately after your 12 consecutive payments either. As long as you continue to make in full on time payments you can use your deferral month at any time in the future.
To take advantage of this benefit you need to make a request at least sixteen days before your next due date. A single missed or late payment will make you ineligible for this benefit for the remainder of your loan.
Change Your Due Date
You have the ability to change your due date up to three times throughout the life of your loan. The first time you do this can be while you are setting up your loan.
Keep mind that you cannot change your due date if you have any past due payments. You also cannot take advantage of this feature if you are in payment deferral or your last month of payment.
While there is a long list of benefits, there are a few negative features about borrowing from Marcus by Goldman Sachs. Applicants from certain states are not allowed, no joint applications, and you have a limited time where term offers are guaranteed.
Maryland is Out
Residents of the state of Maryland cannot apply for a loan with Marcus. Goldman is currently working on fixing this.
Your Credit Score is on the Line
If you have a history of making partial or late payments, you’ll want to be extra careful with your Marcus loan. These types of payments are reported to the credit bureaus and will hurt your credit score.
No Joint Lending
Marcus loans are only available to individuals. You can’t apply jointly with a co-signor.
If you see a loan with favorable terms, you need to apply for it. The loan offers you see are time sensitive and may not be available the next time you inquire.
While Marcus will lend to those who have less than stellar credit, the APR rates will be 16% and up. If you don’t qualify, or receive a high-interest rate it may be best to look elsewhere or improve your credit before agreeing to a loan.
Lack of Communication
Marcus uses the Goldman Sachs customer service department for assisting loan customers. This has proved to cause some problems with borrowers not being able to obtain answers and assistance.
The biggest complaint in Marcus loans reviews is the inconsistency in support and answers. There is also no physical branch to visit. Leaving you with just phone and email support.
The Verdict on Marcus
Borrowers who have excellent credit and high income will be successful with Marcus personal loans. You get all the benefits of an online loan with the backing of the prestigious investment firm of Goldman Sachs.
If you don’t have an excellent credit history, you can still obtain a loan, but it will have a high-interest rate. It would be best to look elsewhere.
Marcus is able to offer a long list of perks and benefits for their borrowers. This includes quick apply savings accounts, on time payment rewards, adjustable payment amounts and due dates, and no fees ever.
Start comparing lenders for your personal loan today!